SBI, Axis Bank, ICICI Bank, others buy stakes in fintech firm IBBIC

Topics sbi | Axis Bank | ICICI Bank

Photo: Shutterstock

Six banks State Bank of India, Axis Bank, Indian Bank, Yes Bank, IDBI Bank, and ICICI Bank on Tuesday said they have bought equity stakes in financial technology platform IBBIC.

SBI, Axis Bank, Indian Bank, Yes Bank and IDBI Bank picked up 5.55 per cent stake each, representing 50,000 shares in IBBIC, for cash at Rs 5 lakh each.

In their separate regulatory filings on Tuesday, these lenders said they have subscribed to 50,000 equity shares of a face value of Rs 10 each fully paid up of IBBIC Private Ltd for a consideration of Rs 10 per equity share constituting 5.55 per cent of the issued and paid-up capital of IBBIC.

The equity is acquired for a cash consideration of Rs 5 lakh by each of them.

Apart from these lenders, ICICI Bank bought 49,000 shares (5.44 per cent) for Rs 4.9 lakh.

Incorporated in May this year, IBBIC platform offers distributed ledger technology (DLT) solutions to the Indian financial services sector.

The equity ownership of IBBIC is aimed at providing DLT solutions for the financial services sector, the banks said.

DLT, more commonly known as blockchain technology, is a protocol to enable secure functioning of a decentralised digital database. It stores information securely using cryptography.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel